Dow bounces back 499 points
Netflix posts first subscriber loss in a decade
NEW YORK (UPI) — U.S. markets rebounded Tuesday as investors weighed a flurry of earnings reports, including disappointing numbers from Netflix.
The Dow Jones Industrial Average gained 499.51 points, or 1.45%, while the S&P 500 rose 1.61% and the Nasdaq Composite ended the day up 2.15%.
Netflix reports a drop in net subscribers for first time in over a decade
Investors continued to place their focus on quarterly earnings reports as Netflix — the first of several major tech companies to report this week — announced a drop in net subscribers for the first time in more than a decade.
Shares of the streaming service were up 3.18% in regular trading but plummeted 20% in after-hours trading in the wake of the news.
Other Dow, S&P 500, and NASDAQ stock up after hours
Johnson & Johnson stock rose 3.05% amid mixed quarterly results that saw earnings per share beat analysts’ estimates while revenue fell short of expectations. Hasbro gained 5.16% despite the toymaker sharing worse-than-expected profits.
Elsewhere Disney stock gained 3.23%, shares of Google’s parent company, Alphabet, were up 1.83% and Microsoft rose 1.7%.
Travel stocks get a boost
Travel stocks also got a boost after a federal judge on Monday struck down the Biden administration’s mandate requiring that travelers on airlines and public transportation wear masks to prevent the spread of COVID-19 on Monday.
American Airlines stock rose 5.66% and United stock gained 4.5% following the news.
Treasury yields rise
Tuesday also saw the 10-year treasury yield rise to 3% for the first time since 2018 as the Federal Reserve is set to tighten its monetary policy.
“The bond market, you could argue, is way out ahead of the Fed in a way the stock market is playing wait-and-see,” Interactive Brokers’ chief strategist Steve Sosnick told Yahoo Finance. “Maybe the stock market is actually, in this case, saying ‘I’m not going to fight the Fed,’ and the bond market in fact is.”
Reporting by Daniel Uria
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